Growth in Sub-Saharan Africa is projected to strengthen to 3.1 percent in 2018

Growth for Sub-Saharan is projected to strengthen to 3.1 percent in 2018 and to 3.5 percent in 2019, below its long-term average.

world.jpgGlobal economic growth will remain robust at 3.1% in 2018 before slowing gradually over the next two years, according to The World Bank.

After reaching 3.1 percent in both 2017 and 2018, global growth is expected to decelerate over the next two years as global slack dissipates, major central banks remove policy accommodation, and the recovery in commodity exporters matures.

Amid moderating international trade and tightening global financing conditions, growth in emerging market and developing economies (EMDEs) is projected to plateau, reaching 4.7 percent in 2019 and 2020, up from 4.5 percent in 2018.

Nigeria is anticipated to grow by 2.1 percent this year, as non-oil sector growth remains subdued due to low investment, and at a 2.2 percent pace next year. Angola is expected to grow by 1.7 percent in 2018 and 2.2 percent in 2019, reflecting an increased availability of foreign exchange due to higher oil prices, rising natural gas production, and improved business sentiment.

South Africa is forecast to expand 1.4 percent in 2018 and 1.8 percent in 2019 as a pickup in business and consumer confidence supports stronger growth in investment and consumption expenditures. Rising mining output and stable metals prices are anticipated to boost activity in metals exporters. Growth in non-resource-intensive countries is expected to remain robust, supported by improving agricultural conditions and infrastructure investment.

However, global growth is expected to edge down over the next two years, as global slack dissipates, trade and investment moderate, and financing conditions tighten.

The World Bank says in Emerging Markets and Developing Economies (EMDEs), growth in commodity importers is expected to remain robust, while the rebound in commodity exporters is projected to mature. Risks to the outlook are tilted to the downside, including the possibility of disorderly financial market movements, escalating trade protectionism, heightened policy uncertainty, and rising geopolitical tensions. EMDE policymakers need to rebuild monetary and fiscal policy buffers and boost potential growth by promoting competitiveness, adaptability to technological change, and trade openness.






Categories: Business, Development

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